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OKRs 101

Definition

What are OKRs?

Objectives and Key Results, or OKRs, is a goal-setting methodology for organizations, teams, and individuals to set ambitious goals with measurable results.

What are OKRs not?

OKRs should not include all of your organization’s work or track business-as-usual activities. Duplicating what already exists as tasks or procedures isn’t focusing on what matters.

History

Where do OKRs come from?

"The Objective is the direction and the Key Results are the milestones..."Andy Grove, OKR inventor

1950s

Peter Drucker develops Management by Objectives (MBO)

1970s

Andy Grove creates OKRs during his time at Intel

1975

John Doerr learns about OKRs from Andy Grove

1999

John Doerr introduces OKRs at Google

2000

Google starts using OKRs to grow

Today

Businesses worldwide use OKRs to grow

Practitioners

What companies use OKRs?

OKR Guide

What determines a good OKR?

Six must-ask questions before creating an Objective

Overview:What is my company’s mission?

Relevance:What is my company’s focus for this year?

Goals:What is my team trying to achieve?

Focus:Is this a main priority or can it wait until the next cycle?

Routine:Would my OKR require any change within my day to day?

Significance:Will anyone else see and understand the importance of this OKR?

Formula

Objective=Verb+what you're going to do+in order to/so that we achieve (business impact)

Questions to ask before creating a Key Result

Overview:What is my company’s mission?

Relevance:What is my company’s focus for this year?

Goals:What is my team trying to achieve?

Formula

Key Result=Verb+what you’re going to track+from X to Y

OKR Superpowers

What are the “superpowers” of OKRs?

OKRs help you manage your F.A.A.T.E.

Focus

Is your organization’s focus clear to everyone so teams can make better decisions, prioritize, and execute effectively?

Alignment

Alignment has five areas: purpose, strategy, organizational capability, resources, and management systems. Is your organization aligned in these areas?

Accountability

Is everyone clear about their responsibilities, from the top down so effective work can be accomplished?

Transparency

Do your employees know what’s happening around them, so they can adjust their goals while supporting the goals and work of others?

Engagement

Do your employees know the purpose of what they’re doing and how their work benefits the organization, their coworkers, and customers?

KPIs

Do I need OKRs if I’m tracking KPIs?

Key Performance Indicators (KPIs) and OKRs go together. KPIs are a tool for evaluating performance. OKRs are used to drive performance improvement.

OKR
Linked to strategic goals
Measures should have strategic significance
Can describe the cross-functional nature of business
Change as strategy evolves
Designed to drive focus
Fosters transparency by default

KPI
Linked to processes
Measures may or may not have strategic significance
Tends not to reflect the cross-functional nature of business
Definitions mostly remain constant
Designed to cover all aspects of the organization
Usually constrained to line of business

Platform